THE KERALA STATE GOODS AND SERVICES TAX (AMENDMENT) BILL, 2021

Fifteenth Kerala Legislative Assembly Bill No. 55

Published on 25-09-2021

THE KERALA STATE GOODS AND SERVICES TAX (AMENDMENT) BILL, 2021

? Kerala Legislature Secretariat

2021 KERALA NIYAMASABHA PRINTING PRESS.

Fifteenth Kerala Legislative Assembly Bill No. 55

THE KERALA STATE GOODS AND SERVICES TAX (AMENDMENT) BILL, 2021

1422/2021.

Fifteenth Kerala Legislative Assembly Bill No. 55

THE KERALA STATE GOODS AND SERVICES TAX (AMENDMENT) BILL, 2021 A BILL

further to amend the Kerala State Goods and Services Tax Act, 2017. Preamble.WHEREAS, it is expedient further to amend the Kerala

State Goods and Services Tax Act, 2017 (20 of 2017) for the purposes hereinafter appearing;

BE it enacted in the Seventy - second Year of the Republic of India as follows:

1. Short title and commencement. (1) This Act may be called the Kerala State Goods and Services Tax (Amendment) Act, 2021.

(2) Save as otherwise provided in this Act,

(a) all sections except sections 2,7, 10,13,14,15, 16, 17,18, 19, 20, 21 shall be deemed to have come into force on the 1st day of January, 2020;

(b) section 7 shall be deemed to have come into force on the 10th day of November, 2020;

(c) section 10 shall be deemed to have come into force on the 1st day of September, 2020;

(d) section 21 shall be deemed to have come into force on the 31st day of March, 2020.

1422/2021.

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(e) the remaining provisions of this Act shall come into force on such date as the Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construde as a reference to the coming in to force of that provision.

2. Amendment of section 2.In section 2 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) (hereinafter referred as the principal Act), in clause (4), after the words "the Appellate Authority for Advance Ruling,", the words "the National Appellate Authority for Advance Ruling," shall be inserted.

3. Amendment of section 10. In section 10 of the principal Act,

(1) in sub-section (1), after the second proviso, the following Explanation shall be inserted, namely:

"Explanation.For the purposes of second proviso, the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for determining the value of turnover in the State.";

(2) in sub-section (2),

omitted;

(i) in clause (d), the word "and" occurring at the end shall be

(ii) in clause (e), for the word "Council:", the words "Council; and" shall be substituted;

(iii) after clause (e), the following clause shall be inserted, namely:

"(f) he is neither a casual taxable person nor a non-resident taxable person:";

(3) after sub-section (2), the following sub-section shall be inserted, namely:

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"(2A) Notwithstanding anything to the contrary contained in this Act, but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, not eligible to opt to pay tax under sub-section (1) and sub-section (2), whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding three per cent of the turnover in State, if he is not,

(a) engaged in making any supply of goods or services which are not leviable to tax under this Act;

(b) engaged in making any inter-State outward supplies of goods or services;

(c) engaged in making any supply of goods or services through an electronic commerce operator who is required to collect tax at source under section 52;

(d) a manufacturer of such goods or supplier of such services, as may be notified by the Government on the recommendations of the Council; and

(e) a casual taxable person or a non-resident taxable person:

Provided that where more than one registered person are having the same Permanent Account Number issued under the Income tax Act, 1961 (Central Act 43 of 1961), the registered person shall not be eligible to opt for the scheme under this sub-section unless all such registered persons opt to pay tax under this subsection.";

(4) in sub-section (3), after the words, brackets and figure "under subsection (1)" at both the places where they occur, the words, brackets, figure and letter "or sub-section (2A), as the case may be," shall be inserted.

(5) in sub-section (4), after the words, brackets and figure "of sub-section (1)", the words, brackets, figure and letter "or, as the case may be, sub-section (2A)" shall be inserted.

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(6) in sub-section (5), after the words, brackets and figure "under sub-section (1)", the words, brackets, figure and letter "or sub-section (2A), as the case may be," shall be inserted.

(7) after sub-section (5), the following Explanations shall be inserted, namely:

"Explanation 1.For the purposes of computing aggregate turnover of a person for determining his eligibility to pay tax under this section, the expression "aggregate turnover" shall include the value of supplies made by such person from the 1st day of April of a financial year up to the date when he becomes liable for registration under this Act, but shall not include the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.

Explanation 2. For the purposes of determining the tax payable by a person under this section, the expression "turnover in State" shall not include the value of following supplies, namely:

(i) supplies from the first day of April of a financial year up to the date when such person becomes liable for registration under this Act; and

(ii) exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.".

4. Amendment of section 22. In section 22 of the principal Act, in subsection (1), after the second proviso, the following shall be inserted, namely:

"Provided also that the Government may, on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.

Explanation.For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.".

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5. Amendment of section 25. In section 25 of the principal Act, after subsection (6), the following sub-sections shall be inserted, namely:

"(6A) Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed:

Provided that if an Aadhaar number is not assigned to the registered person, such person shall be offered alternate and viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe:

Provided further that in case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid and the other provisions of this Act shall apply as if such person does not have a registration.

(6B) On and from the date of notification, every individual shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number, in such manner as the Government may, on the recommendations of the Council, specify in the said notification:

Provided that if an Aadhaar number is not assigned to an individual, such individual shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.

(6C) On and from the date of notification, every person, other than an individual, shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing Director, whole time Director, such number of partners, Members of Managing Committee of Association, Board of Trustees, authorised representative, authorised signatory and such other class of persons, in such manner, as the Government may, on the recommendations of the Council, specify in the said notification:

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Provided that where such person or class of persons have not been assigned the Aadhaar Number, such person or class of persons shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.

(6D) The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of persons or any State or Union Territory or part thereof, as the Government may, on the recommendations of the Council, specify by notification.

Explanation.For the purposes of this section, the expression "Aadhaar number" shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (Central Act 18 of 2016).".

6. Insertion of new section 31A. After section 31 of the principal Act, the following section shall be inserted, namely:

"31A. Facility of digital payment to recipient. The Government may, on the recommendations of the Council, prescribe a class of registered persons who shall provide prescribed modes of electronic payment to the recipient of supply of goods or services or both made by him and give option to such recipient to make payment accordingly, in such manner and subject to such conditions and restrictions, as may be prescribed.".

7. Amendment of section 39. In section 39 of the principal Act,

(1) for sub-sections (1) and (2), the following sub-sections shall be substituted, namely:

"(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed:

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